Bill supports student loan borrowers, increases transparency in loan disclosures
The Student Loan Disclosure Transparency Act would require separate, monthly disclosures to student loan borrowers regarding their projected payments, accrued interest, total cost of attendance, and other personalized details in understandable terms.
Go figure that, right? Understandable terms?
This requirement would give students more information as they begin to manage their finances and understand the significant financial commitment associated with taking on student loan debt.
The bill would require these regular monthly disclosures throughout the life of a federal loan.
Seems like something logical to do, but the legislation, introduced by Seventh District Democratic Abigail Spanberger and Washington Republican Jaime Herrera Beutler, isn’t new.
Spanberger first helped introduce the legislation in 2019, and here we go again.
“Students who attend college are making an enormous investment in their futures and the long-term strength of their communities. Unfortunately, too many Central Virginia students and graduates are crippled by the weight of their student loan debt. This financial burden stunts their ability to buy a home, start a business, and pursue their career goals,” Spanberger said.
“I’m proud to help reintroduce this bipartisan bill, which is an important first step toward delivering the transparency that borrowers need to take control of their financial future and make informed, responsible decisions. Particularly as we focus on rebuilding our economy in the wake of COVID-19, we can and should do more to equip our young people with the tools they need to work, invest, and thrive across our Central Virginia communities.”
“Students who choose to further their education deserve simplicity and transparency in the student loan process. The lack of clarity in the loan process today is contributing to this nation’s student loan debt crisis, and it’s why I’m leading bipartisan legislation to address this issue,” Herrera Beutler said. “This bill will help set up Southwest Washington students for success by empowering them to make the best decisions for their educational and financial future.”
The Student Loan Disclosure Transparency Act would improve transparency across the entire life of the federal loan while the borrower attends college and during any period of repayment, deferment, forbearance, or delinquency. Additionally, the bill would help encourage student borrowers to pay interest fees and other costs before graduation.